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Rabat — Morocco’s Competition Council announced on Friday a significant reinforcement of its monitoring mechanisms governing how international petroleum price fluctuations are transmitted to the domestic market.
The decision comes as part of the Council’s broader mandate to ensure fair competition and proper market functioning, particularly in light of the sharp and rapid increases recently recorded across global oil and petroleum-derived product markets. These include not only refined fuels but also widely used industrial materials such as plastics.
In a statement, the Council pointed to a tense international context marked by escalating geopolitical tensions in the Middle East, coupled with ongoing military developments. These dynamics have disrupted global supply chains, contributing to heightened volatility in energy markets.
As a net importer of liquid petroleum products, Morocco remains particularly vulnerable to such external shocks. Diesel and gasoline, which account for a substantial share of the country’s energy consumption, are especially exposed to international price swings. The same applies to petroleum derivatives like plastics, which play a critical role across multiple sectors of the national economy.
Within this framework, the Council has engaged with major fuel wholesalers bound by prior settlement agreements that include commitments to regular market monitoring. These agreements require close tracking of international price trends and their transmission to local markets.
Following consultations with the operators concerned, the Council announced that it will publish an explanatory note detailing its findings and approach on its official platform.
Reaffirming the principles of a competitive market, the institution stressed that domestic price movements should reflect international trends proportionately and within reasonable timeframes, while also accounting for logistical constraints such as supply and storage.
Given the current pressures affecting global supply, the Council has opted to intensify its oversight by shifting from quarterly reviews to monthly monitoring. This enhanced scrutiny will cover diesel and gasoline prices at various stages of the supply and distribution chain.
Beyond the hydrocarbons sector, the Council signaled heightened vigilance across other industries, warning against unjustified price increases, excessive profit margins linked to current conditions, and any signs of anti-competitive behavior. These include potential collusion, coordination among operators, abuse of dominant positions, or any practices that could distort market dynamics.
The Council further emphasized that any disproportionate changes in prices or margins—whether compared to international benchmarks or actual operational costs—will be subject to detailed examination, including through annual financial reporting assessments of companies operating in the concerned sectors.
Through this strengthened monitoring framework, the Council hopes to enhance market transparency, ensure fair competition, and protect consumers from unwarranted price increases in a period of global uncertainty.
